The Law Office of Lynnette Ariathurai A Professional Corporation

Court in California issues ruling in contract dispute case

California workers and employers often enter signed agreements with one another regarding various aspects of their employment relationships. Sometimes, a contract dispute arises that appears impossible to resolve without court intervention. Such seems to have been the case in one situation involving a casino owner and a former employee.

The contract dispute surrounded issues concerning the fact that the former employee had gone to work for another casino in the area. Her new employer's establishment was just three miles down the road from her former place of work. The woman's former employer said that by accepting a paid position at the other company, she had violated the non-compete clause in the contract she had signed while still employed at her former workplace.

The owner also accused the former employee of copying and changing customer-base information. The situation led to a trial, the ruling of which was later appealed in a state supreme court. It seems the contract the woman had signed stated that she could not accept work at a similar establishment within 150 miles for at least one year.

Some say the ruling, which stated that the non-compete clause was unreasonable, was the beginning of the end for such contracts. Any California employer who has questions or concerns about the issue could contact a business and commercial law attorney to request a consultation. An attorney who has successfully represented other employers would be able to explain all options that might be available to work toward a positive outcome that protects business interests and resolves contract dispute problems.

Source: lasvegassun.com, "With restrictive ruling on noncompetes, casinos could be forced to adjust", Daniel Rothberg, Aug. 10, 2016

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